Question

Explain the concepts of ‘related bodies corporate’ and ‘controlled entities’ that appear in the Corporations Act 2001 (Cth). Explain the concepts of ‘related bodies corporate’ and ‘controlled entities’ that appear in the Corporations Act 2001 (Cth). Explain the concepts of ‘related bodies corporate’ and ‘controlled entities’ that appear in the Corporations Act 2001 (Cth).

Answer 1

As per Corporate Act 2001, Sec 50 Related Bodies Corporate are those which is :

a) a holding company of other company, b) Subsidiary Company of any other body corporate, c) a Subsidiary of a holding company of a body corporate.

In simplified words a company which is holding of a company or a Subsidiary of a holding company or a Subsidiary of a company which is holding company having more than one Subsidiary. The related bodies are covered as holding , Subsidiary or second Subsidiary of a holding company.

CONTROLLED BODIES Sec 50AA of corporation Act, 2001

Controlled bodies are those entities which are controlled or managed by any other entity or more than one entity. Controlled bodies have the full influence of the other entity on its its ating decisions or any financial decisions for the entity.

Controlled entities are fully controlled by an entity which is having full influence on the entity for any decision in the entity and have to do this because of the legal obligations on the entity for the stake of the members of the controlled bodies,it can't take decisions which are only beneficial for the controlling entity.